Red Sea shareholders approve SAR 19.2 mln deal with Petromin

The shareholders of Red Sea Housing Services Co. have approved the signing an agreement with Petromin Corporation for a total value of SAR 19.2 million, the Saudi developer said in a statement to Tadawul.

Under the agreement, Red Sea will build a factory that makes prefabricated housing units on a plot of land it previously leased in King Abdullah Economic City (KAEC).

The payments will be made over sixteen and a half years, through annual installments of SAR 1.1 million subject to commencement of operation of the roll-on/roll-off (RoRo) terminal in KAEC, which is expected to be during the first half of 2017.

In June 2014, the developer launched the first phase of its prefabricated housing manufacturing and labor housing complex projects at KAEC, according to the data available on Argaam.